Novice investors like you and me have never had it so good. Three whiz-kid stock pickers, S. P. Tulsian, Ashish Chugh and Basant Maheshwari, with impeccable credentials, have not only revealed important techniques on how to find multi-bagger stocks but have also handed over several stocks to us on a platter.
All three have provided valuable insights on how we can go about the task of finding winning stocks and building a mega fortune for ourselves.
S. P. Tulsian’s multibagger picks:
The company is into readymade garments. Blackstone is the promoter of the company and it holds 58 percent. The company has a very good product line. They make two million pieces per month or 24 million pieces per annum and cater to their global brand. The company has a turnover of Rs 1,000 crore . The stock is available at Rs 50-60 and the promoter is looking to de-monetise the assets of the company.
This is a multi-product company. They have presence in the logistic space and in packaging. They are the India’s largest cap makers in metals as well in polymers. Presently, they have two acre plot that the company is looking to monetise for close to Rs 400 crore. The company, meanwhile, has a debt of less than Rs 100 crore. Focus on the company’s logistic and packaging businesses. Both have tremendous growth potentials and respectable promoter holding.
This may not be strictly a multibagger. Multibaggers should not be implied or treated as 1x, 2x, 3x or 4x. The company has gone into trade to trade (T2T), because they have not finalised their accounts for March and June. The BK Birla Group company has not finalised its accounts for last three quarters because they wanted to sell their tyre division, but now they have completed their accounts.
Within the next one month, they have to finalise two quarter results. By December, the stock should be out from the T2T and that itself is a big trigger. Furthermore, there’s talk that the company may be coming back into the fold of Kumar Mangalam Birla.
Ashish Chugh’s multibaggers:
Ajmera Realty & Infra India
This is a company which is available at a market cap of just about Rs 400-450 crore. It has 100 acres of land bank at Bhakti Park, 66 acres at Kanjurmarg and 20 acres in Bangalore. If one just does a back-of-the-envelope calculation of the value of the realisable value of the property which they can do, that itself if huge.
The difference between this company and the other companies in the real estate sector is that this company is not really stressed in terms of very high debt. It has debt, but it has got debt at manageable levels about Rs 300-350 crore. So, here is an opportunity where I believe the intrinsic value could be much higher where as the valuation of the company is much low.
However, at the same time the sector is something which nobody wants to touch at this point of time. If somebody ask me 10 questions I may not be able to satisfactorily answer those questions because it is unfavoured sector. So, there are challenges but it is only because challenges that this is available at Rs 400 crore.
Despite the stock having already given multi-bagger returns, the market cap is only Rs. 400 crore. The level of penentration in India for ice creams is still very low and so the stock has a lot of potential for giving gains.
Basant Maheshwari’s multi-bagger stock picks:
Surprisingly, the moderator appears to have forgotten to ask Basant Maheshwari for his multibagger stock picks. Alternatively, Basant may have decided not to reveal any owing to his bitter experience over the failure of Hawkins Cookers.
For the record, Basant’s last-known favourite stocks are Granules India, Torrent Pharma and Cadila Pharma. He has also recommended a “blind buy” of housing finance stocks like Repco and Gruh. In an earlier interview, Basant revealed that he had engaged in “creative destruction” to dump his old favourite stocks like HDFC Bank (and perhaps Hawkins and Page Industries also).